Stocks rose sharply on Tuesday as technology shares outperformed while investors remained cautiously optimistic Washington and Beijing could move forward on a trade deal.
The Dow Jones Industrial Average surged 300 points, Led by gains in United Technologies and Nike. The S&P 500 gained 0.95 percent as the industrials and consumer discretionary sectors outperformed. The Nasdaq Composite climbed 1.1 percent.
Shares of Facebook, Amazon Netflix and Google-parent Alphabet all traded 0.9 higher, adding to their solid January gains. Apple’s stock also climbed 1.3 percent.
These gains add to the sharp turnaround seen in most of the popular “FAANG” trade since Dec. 24. Through Monday’s close, Facebook shares have surged 12.2 percent since then, while Amazon has rocketed 24.7 percent. Netflix and Alphabet, meanwhile, are up 35 percent and 10 percent in that time period.
Tuesday’s moves come as several officials from the world’s two largest economies continue talks to resolve their ongoing trade dispute. U.S. Commerce Secretary Wilbur Ross told CNBC on Monday that both global powers could reach a settlement “they can live with, and that addresses all the key issues.”
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China’s Foreign Ministry previously said Beijing had “good faith” to work with Washington to reach an agreement before a March deadline.
President Donald Trump also tweeted on Tuesday that U.S.-China trade talks are “going very well.”
Strategists at MRB Partners said in a note the U.S.-China trade situation is setting itself up for a more benign outcome than had been previously expected.
“The U.S.-China power struggle will persist for years, but both economies are now slowing and neither government has the latitude to pursue policies that could threaten to trigger a global recession,” they said. “The Argentina handshake will morph into a near-term truce.”
However, investors are still grappling with an ongoing U.S. federal government shutdown that started over a disagreement on funding for a wall along the U.S.-Mexico border. Trump is scheduled to deliver a prime-time address Tuesday night and is expected to focus on the standoff over his proposed border wall that has shut down large chunks of the federal government.
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Source: cnbc.com | Original Link